7 October 2012

Don't let your age keep you grounded

Travel insurance premiums can soar as you get older - here are some idea of how to keep the cost down.

Older travellers finding it increasingly difficult to get holiday insurance as insurers continue to turn their backs on people above certain ages.One quarter of firms that offer annual travel insurance considers people in their sixties too old to insure, while 90% will not entertain covering people in their eighties.Research by Which? found that travellers who did manage to find a policy that would cover their travels were forced to stump up hefty premiums, with some insurers tripling the premium as soon as someone turned 66.Apparently Swiftcover, whose adverts feature Iggy Pop, won't cover new customers who are aged 65 or over which is bad news for the former Stooges singer, is 65 himself! Even when insurance travel is available for older people, Which? Money discovered that premiums invariable rocketed once milestone ages were reached. For instance an annual policy with Essential Travel would cost £59 on the even of a prospective customer's 66th birthday but £206 the next.Ageism for travel insurance has been a problem for many years, but last year Gnu Insurance (http://www.gnuinsurance.co.uk/?gclid=COLpoeKV77ICFaXKtAodZTMA6g), part of Aegon, launched a new pay-per-day travel policy for older people that claims to provide them with year-round cover for a fraction of the cost.For an upfront payment, this cover provides for pre-travel essentials such as cancellation and the collapse of a tour operator, in addition to cover for any trip in the UK for two days or more.

Holidaymakers can then add cover just for those days they are away, from as little as 67p a day. Gnu Insurance also claims it will cover any pre-existing medical condition, many at no extra cost.For instance, a 79 year old holidaymaker taking out this type of policy would face a one-off charge of £88 plus an additional £8 per day. So two fortnight-long holidays would cost £302 - with lengthier stays costing more. A standard annual worldwide policy would cost the same traveller £349.An expert at moneysupermarket.com said that while it was an interesting concept, the prices were not competitive and holidaymakers could find cheaper alternatives. Their figures show that the price of a standard worldwide annual policy fora 79 year old is 75%K more expensive with Gnu than their best buy. With pay per day policies, travellers would save money on an annual premium only if they travelled between 14 and 18 days in a year.They also pointed out that while Gnu claimed to accept any medical conditions, travellers would still have to go through medical screening and could end up paying more.Insurers baulk at covering older travellers because statistically they are more likely to make a claim, either for medical treatment abroad or for a holiday cancelled because of ill health. But rather than going up gradually each year, premiums tend to jump every five years.Most insurance65th birthday you are in a new age band and will be priced accordingly. The industry agrues that with greater age comes greater risk and that some firms cannot accommodate 'riskier' customers iun their business model.However, that it should not be age alone that made customers a high risk - it should come down to each individual's health and claims history.There are many very healthy people in their sixties, seventies and eighties today, yet most of these low-risk customers are turned away simply for being the wrong side of 65.Where insurers did not have maximum age limits, premiums were often so high as to be unaffordable.Many elderly people also pump all 61 to 65 year olds together, so once you pass your 65th birthday you are in a new age band and will be priced accordingly. The industry argues that with greater age comes greater risk and that some firms cannot accommodate 'riskier' customers in their business model.However, it should not be age alone that made customers a higher risk - it should come down to each individual's health and claims history.There are many very healthy people in their sixties, seventies and eighties today, yet most of these low-risk customers are turned away simply for being the wrong side of 65.Where insurers did not have maximum age limits, premiums were often so high as to be unaffordable.Many elderly people also face the problem of not being able to get the best deals, as 60% of people over 65 have never used the internet - yet this is where the lowest prices tend to be found.There is another option for older travellers who may already have cover through a credit car or packaged bank account and be unaware. For instance, if you are one of the 100,000 M&S Premium Club credit card holders (http://bank.marksandspencer.com/cards/premium-club/overview/) you will already have annual worldwide multi-trip travel insurance for couples up to the age of 80, for the low price of £180 per year - or £15 a month - in fees.Many bank accounts that charge fees of between £5 and £15 a month offer annual cover as part of the package. These seem expensive when you are younger, but for older people whose insurance is otherwise more expensive, this perk may be worth bearing in mind.Also the availability of travel insurance for the elderly is one of the key benefits of some packaged current accounts. However, it's essential that any pre-existing medical conditions are declared to the relevant provider as failing to do so could invalidate the policy.Bank accounts that offer over 70s over for no extra charge include Halifax Ultimate Reward, Lloyds TSB Gold, Barclays Additions Active and HSBC Advance. Others that charge a £50 supplement for cover include Santander's Reward current account, NatWest Advantage Gold and RBS Royalties Gold.As with all such 'clubs' or accounts, you need to look at all of the benefits to see if they provide good overall value for the fee being paid.For older customers it may well work out as a good price for what is a good-quality insurance product.Insurance Options for the over sixty-fivesAll Clear Insurance: offers cover to 'all ages'. ( )Avanti Travel Insurance: can cover those aged up to 85 (up to 75 for annual policies. ()Flexicover: no age limit on single-trip policies; its annual multi trip insurance goes up to the age of 85.